Friday, 11 April 2014

Dialog slips on concerns over Tanjung Langsat Port legal suit

Dialog Group Bhd's share price fell early Friday on investor concerns over a notice of arbitration filed by Tanjung Langsat Port Sdn Bhd (TLP) over the oil terminal project in Johor.

On Thursday, Dialog said its unit Dialog E&C Sdn Bhd had received a notice of arbitration TLP for arbitral proceedings under the engineering, procurement, construction and commissioning (EPCC) contract dated Oct 18, 2006 and a settlement agreement dated May 13, 2011.

TLP and Dialog E&C entered into the EPCC contract for a 100,000 cubic metres oil terminal project. The EPCC contract price was RM89.5mil.

TLP alleged it has suffered losses and damages caused by a fire an part of the plant which occurred on Aug 17, 2008, after completion of the project and handover of the Facility by Dialog E&C as the EPCC contractor.